Thursday, 3 October 2019

potut pottuina

Overshadowed by his magnificently telling tantrum, the Trump’s White House did manage to open up a second front in his ongoing trade wars with the US Trade Representative, a Trump appointee, announcing that the World Trade Organisation will grant the US the right to levy tariffs on around seven billion euro (one percent of US-EU trade) on European exports—wine and cheese, in retaliation for the EU’s privileging its domestic Airbus over international competition.
We can’t say that the US has been subsidising its native industries in the same way for the past decade and a half of this squabble or whether it’s quite a fair ruling—though it highlights the asymmetry of government support and interventions and how diverting subsidies from staid business models in transport and agriculture would help drive greener and cleaner innovations. Further implication might be the UK becoming even more willing to crash out of the Union with no deal and into an unequal partnership with the States.  The EU is expected to respond in kind—though direct countermeasures are not allowed, WTO rules have no jurisdiction on boycotts.